Good pricing practices are crucial for businesses and individuals that sell products. A good pricing practice should be flexible to accommodate a multitude of variables such as market conditions, customer demand, product cycle, and competitors. A good pricing practice should also respond quickly to changing conditions. As a result, sellers need to carefully track and manage the pricing of their products.
Pricing management is a process sellers use to determine and set an optimum price for their products to achieve their short-, medium-, and long-term goals for sales volume, market position, brand identity, and revenue. Currently, after setting a price for a product, a seller has to frequently monitor the sales of the product to determine whether a product is selling well at the current price and whether to adjust the price of the product. For example, if a product is highly depreciable, such as an electronic device, the seller may need to continually monitor the sales of the product. This can be a time-consuming and exhausting process. It can also be emotionally distressing to continually consider changing the price of products.
Once sellers set the price of a product, they tend to neglect to adjust the price according to market conditions. This often results in reduced profits and lost opportunities since the price of the product may fail to reflect market reality.
Therefore, what is needed is an automated solution that reduces the burden on sellers to constantly monitor and manually adjust the pricing of their products. Embodiments of the present invention address this need and other shortcomings that exist in current systems.